Council approves three-year Gallagher benefits contract after discussion about commissions

The Amsterdam Common Council voted to authorize a three-year contract with Gallagher Benefit Services Inc. for employee benefits administration, effective April 1, 2025, at a stated base cost of $110,000 per year plus certain commissions listed in the contract.

Alderman Holiday presented the resolution, saying the recommended contract would lower the city's quoted expense and provide employees a forum for engagement with the broker. Council members asked for clarification on the commission language during discussion. Staff and council members explained portions of the commissions are paid by carriers (Anthem, Delta, Aflac were cited in the contract schedules) and therefore were not presented as a single dollar figure in the resolution. The council recorded one dissenting vote (Alderman Artisello) and approved the contract by roll call.

Why it mattered: the contract locks in the city's base annual broker fee for three years, and staff said it will provide continuity for employee benefits while reducing the city's administrative expense in the near term. Council discussion centered on transparency around total compensation to the broker and whether commission language should be detailed in the resolution.

What the record shows: the resolution text and attached schedule cite a baseline city cost of $110,000 per year plus listed commission arrangements (Anthem Medicare Advantage commissions, Delta dental/vision standard-scale commissions, and an Aflac accident/cancer 3% of premium commission). Council members and staff confirmed the commissions are variable and typically carrier-paid; the resolution passed with four ayes and one no.